OPEC hikes its 2018 forecast for oil supply growth on a flood of US crude

Written by Tom DiChristopher at CNBC

OPEC raises its oil demand forecast but sees supplies from beyond the producer group surging this year, driven by rising U.S. output.

A monthly report also showed OPEC’s production was little changed in January as the group continues to limit its output for a second year in order to balance an oversupplied market.

OPEC said Monday it expects demand for oil to grow faster than it originally expected in 2018, but the organization also sees supplies from beyond the producer group surging this year, driven by rising U.S. output.

A monthly report also showed OPEC’s production was little changed in January as the group continues to limit its output for a second year in order to balance an oversupplied market. However, key members like Iraq raised their output in January.

The 14-member cartel said it now sees non-OPEC production growing by 1.4 million barrels per day, up 250,000 bpd from its estimate in its last monthly report. It expects nations outside OPEC to pump a total of 59.26 million bpd this year, 320,000 bpd higher than its last forecast.